Mobile marketing

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17 Mobile Marketing What’s inside: The key terms and concepts required for understanding mobile marketing We then include an introduction to marketing through SMS, MMS, USSD and augmented reality We explore mobile analytics and mechanics for measuring your mobile marketing efforts Mobile Marketing › Key terms and concepts Mobile Marketing › Introduction 17.1 Introduction The mobile web is ubiquitous; six out of every seven people in the world use a mobile phone – that’s six billion people (Wang, 2013) More people are active on Facebook through mobile devices than desktop (Tam, 2013); comScore research shows that Americans spent 225.4 billion minutes on the Facebook mobile app and mobi site during the second quarter of 2013, and 18.4 billion minutes on Twitter’s mobile app and site (Vranica, 2013) The Mobile Marketing Association (MMA) defines mobile marketing as “a set of practices that enables organisations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network” (Mobile Marketing Association, 2013) At the foundation, people use mobile devices to communicate – by voice, text or web access Belonging addresses the need to be social and to form communities, using tools such as mobile social networks Further up, mobile devices allow a great degree of on-the-go convenience, such as online shopping, research, mobile banking, career listings, coupons, and more – these more advanced capabilities are not available on very basic mobile devices Education and information gathering also fit in here Finally, mobile phones can entertain through games, apps and rich media Understanding where your target market falls on this scale will allow you to communicate more effectively with them, using the correct mobile channels and approaches In this chapter, you will learn: Mobile devices are important to consider in any marketing strategy, and this chapter looks at the ways in which we can use mobile as part of an engagement strategy note Google’s marketing philosophy involves “reaching people in the moments that matter” Mobile plays an essential part in this Mobile engagement extends far beyond just the mobile phone, or just SMS marketing It’s a mindset rather than a specific tactic It’s all about context – reaching people at exactly the right time, place and mood to facilitate their needs, provide a convenient touchpoint and encourage them to convert It’s important to note that mobile marketing is very different in the developed world – where smartphones dominate, delivering rich web and application user experiences – and the developing world – where many phones are still text based, have crude WAP browsers, and radio, USSD and SMS are the most prolific services Mobile users have a hierarchy of needs, which are fulfilled to various degrees by the capabilities of their devices: • Why mobile is the most important communication channel available to marketers today • A variety of mobile messaging channels and applications, from simple SMS messaging to advanced mobile commerce • The role that mobile can play in a holistic marketing strategy, taking advantage of its unique features • How to track and measure mobile activity 17.2 Key terms and concepts Term 3G Third Generation of mobile communications systems A set of wireless protocols or standards used to transmit data to and from mobile devices It is faster than previous generations, offering users a wider range of advanced services while achieving greater network capacity Application Software that is developed specifically for smartphones and other mobile devices Also known as an app There are two types: mobile web apps and native apps Augmented reality (AR) A variation of virtual reality that takes computer graphics and superimposes them onto the physical space around the person operating an AR device These graphics can be 3D images or simply information tags about a location Bluetooth A short-distance wireless transfer protocol for connecting devices Entertainment Convenience and life advancement Definition Belonging Basic communication Figure The mobile hierarchy of needs, devised by the Quirk Think team 462 463 Mobile Marketing › The role of mobile in personal communication Mobile Marketing › Key terms and concepts Common Short Code (CSC) A special number or code that can be used to address SMS and MMS messages from mobile phones or fixed phones, usually to get something in return Geo-targeting Also known as location-based targeting Delivering specific information or content to a user based on their geographic location Mobile devices can enable this with high precision through features such as GPS and other location-based services Multimedia Message Service (MMS) A media-rich extension of SMS, which allows picture, sound or low-quality videos to be sent on a wireless network QR code Also known as a 2D barcode These are scannable barcodes that can be read by certain mobile applications (by taking a photo of the barcode) They contain information such as a URL Short Message Service (SMS) Text messages that can be sent to mobile phones from the Internet or from other mobile devices Usually limited to 160 characters Unstructured Supplementary Service Data (USSD) A messaging protocol used to connect mobile devices with a service provider’s computers, often enabling a variety of applications and creating a real-time connection that allows two-way interaction Wireless Application Protocol (WAP) A set of protocols used to connect mobile phones to the Internet over a mobile wireless network Wireless Fidelity (Wi-Fi) The transfer of information from one device to another over a distance without the use of wires Mobile devices are personal note While most computers present a personal connection to the Internet, they are not as personal as mobile devices Mobile phones are part of people’s personal presentation and their social affiliations Think about your own habits: when was the last time your mobile phone was out of reach, or turned off? The implication for marketers: Respect for privacy and permission is important in all aspects of marketing, particularly when it comes to mobile Mobile devices are always carried Consider your own behaviour: what you take with you when you leave your house – wallet, keys and mobile phone? The implication for marketers: Messages sent to mobile devices will most likely be accessed within minutes of being received Messages sent to recipients can be read and acted on immediately Mobile devices are always on In order to fulfil its primary function – as a communication tool – the mobile device is always on The implication for marketers: Marketers need to be even more sensitive with their marketing communications Not many people would appreciate an SMS at 4am informing them of a special offer Mobile devices have a built-in payment system 17.3 The role of mobile in personal communication All mobile phones (and many other mobile devices) have a built-in payment mechanism – the SIM card Billing is easily handled through the user’s mobile network On top of that, paying for content and downloads has been built into the way that consumers use their devices Mobile is an excellent marketing, advertising and distribution channel due to its always-on, always nearby nature As mobile devices offer constant access and communication to users, they add a layer of interaction to existing real-world relationships The implication for marketers: Consumers are willing to pay for services and content on their mobile devices Advertising is not the only way to generate revenue for content 17.3.1 Six unique features of mobile Tomi Ahonen, an expert in mobile communications, has laid out six features that are unique to mobile and act as a framework for understanding mobile communications (Ahonen, 2008) These features affect the way we create and view mobile content 464 Mobile devices are available at the point of creative inspiration The mobile device features a number of tools that let users act on creative impulse, from taking photos and videos to becoming a scribbling pad on which to jot down ideas Tools like Instagram, Evernote and Snapchat are purpose built for creating, sharing and consuming creative content The implication for marketers: This feature can be used to encourage interactivity within campaigns created for mobile It presents the mobile device as a useful 465 Mobile MarketingMobile messaging channels Mobile Marketing › The role of mobile in personal communication note Read more about this in the Customer Relationship Management chapter tool in viral campaigns based on consumer-generated content The flipside is that people can also post negative brand messages in the heat of the moment if they have a bad experience; online monitoring and CRM should be considered here for managing any potential backlash Mobile devices allow accurate audience measurement Every transaction made on a mobile device can be uniquely tracked, whether the transaction is a voice call, an SMS message or access to the Internet They also allow for real-time tracking, where campaigns can be tweaked as they are run, and for location-based tracking, where customers receive marketing messages base on where they are physically located The implication for marketers: Aggregated data provides profiling and segmenting opportunities for targeting the right audience Campaigns can also be accurately measured and tracked for their return on investment (ROI) As always, make sure you are respecting your customers’ privacy and obtaining their consent Of course, many people own more than one mobile device, or use it in connection with various other devices This phenomenon of multiscreen usage is very important for marketers to understand Here are some common scenarios: • People often browse eCommerce websites using their mobile device, but then make the final purchasing decision at a desktop computer • Similarly, customers may use their mobile devices in physical retail outlets to scan, compare and research items, making their purchase later once they’ve had the chance to research in more detail • Commonly, people use a mobile device like a smartphone or a tablet while watching TV, simultaneously engaging with two screens and streams of content at once By understanding how your audience uses their devices in combination, or at different stages of the sales process, you can improve your CRM, marketing and analytics processes 17.3.2 Mobile devices: An overview Mobile network standards Mobile devices span beyond just mobile phones While we focus on mobile phones in this chapter, since those are the most prevalent, it’s important to acknowledge that mobile devices include portable game consoles, media players, global positioning systems and tablets When it comes to mobile, there tend to be lots of confusing acronyms and technical terms to understand; as a marketer, however, it’s not vital to understand all the nitty gritty details To keep things simple, mobile network standards are the technologies used to connect a mobile device to the mobile network There are three main ones you should know: note Reality TV shows take advantage of this by providing a number that viewers can contact to vote, share comments or affect the outcome of the programme • GSM is the most widespread global network standard and is found across Europe, Africa, and most other parts of the world • CDMA is predominantly found in the US, Canada and some Asian countries • LTE is an upcoming, upgraded and faster version of GSM 17.4 Mobile messaging channels There are many features built into the mobile phone that can form a part of your marketing campaigns 17.4.1 SMS Figure ‘Mobile’ includes many different mobile devices 466 Short Message Service (SMS) is the largest data application on the planet By the end of 2013, mobile users will be sending 19.5 billion SMSs per day (Clark-Dickson, 2013) It is also one of the simplest and most effective mobile marketing channels available Interestingly, SMS messages were initially designed as a way for network engineers to conduct tests on mobile networks, and not for commercial use at all 467 Mobile MarketingMobile messaging channels Mobile MarketingMobile messaging channels SMS messages can be a maximum of 160 characters long, although it is possible to string several together in order to send longer messages (this is called concatenating) Messages can be sent from one phone to another or from a desktop computer to a phone and vice versa Almost all mobile phones support SMS The restriction on the amount of data that can be communicated through SMS demands simplicity, and so consideration must be given to working creatively within the space of the small screen note Many smartphones allow users to block spam numbers directly from the device - make sure that your SMS communications don’t compel your customers to this! SMS has useful marketing applications It enables two-way communication, which allows subscribers to activate services and cheaply access important information However, abusing this type of communication can also be problematic The mobile phone is a highly personal device, and the potential to invade a mobile user’s personal space is much greater SMS and marketing With the massive volume of SMS messages being sent every day, SMS marketing must be considered by marketers However, mobile phone users have proved reluctant to hand over their phone numbers for marketing messages, perhaps fearing a similar deluge of spam to the one they receive in their email inboxes This is changing to some extent, with the prevalence of Common Short Codes (CSC) in marketing CSCs are short codes used in text messages, usually to get something in return, such as a competition entry These can be sent to and from consumers, and often use keywords There are two standard keywords that should always elicit a standard response: • STOP Unsubscribe the sender’s number from the service • HELP A support request from the sender’s number As consumers are comfortable with using text messages for their communication, no extensive education process is required to have consumers access marketing campaigns based on CSCs There are several ways that SMS messages can be used to complement an existing marketing strategy Customer relationship management SMS updates can be an exceptionally useful tool for customer relationship management (CRM) In the travel industry, hotel and airplane reservations can be sent by mobile phone, with updates being sent close to the time of travel These short messages can include directions or details of a flight’s status When it comes to insurance claims or order processing, SMS updates on the progress of a claim or order can reduce call centre volumes and go a long way to ensuring that a client feels valued Promotions SMS messages allow you to send timely sales promotions to a large database for a relatively low cost These can be targeted to a particular time of day when prospects are most likely to be out shopping Receiving messages CSCs are often used to receive messages from prospects or customers They provide a fast, instant and trackable means for the public to enter competitions, voice opinions, or make requests Even better for a company, the costs can often be passed on to the consumer, meaning that it can be a cost-effective way to receive marketing messages Please call me messages Please call me messages – SMSs that are sent for free, asking the recipient to phone the sender back – are popular across Africa These usually include an advert after the message, and this is an excellent position to reach lower-LSM users, who are more likely to be sending these messages 17.4.2 MMS Multimedia Messaging Service (MMS) is the media-rich version of SMS messages, and can contain graphics, audio, video, or images and text These messages allow for richer information to be sent using WAP, but the costs are considerably higher Figure A Common Short Code on a competition entry from Spark ATM 468 469 Mobile MarketingMobile messaging channels Mobile MarketingMobile messaging channels MMS messages are particularly useful in viral campaigns, encouraging participants to use their phones to create content (photographic, audio or video) and pass on content However, MMS usage doesn’t appear to be a cost-effective method for marketers as it requires the recipient to bear considerable data costs to receive the messages 17.4.3 Wi-Fi and Bluetooth 02 01 Current account balance: 24,00€ SIM card validity period: April 24 2013 (1) Remaining minutes (3) Remaining data (0) Main menu (0) Options Send Cancel Send Cancel Apart from cellular network connectivity, most modern mobile devices have the ability to connect via Wi-Fi or Bluetooth Figure How USSD appears on a phone Figure The Bluetooth logo note How would you feel if you suddenly received a Bluetooth message while out and about? Would you consider this valuabe or invasive? Would this also depend on the brand sending the message? If a user sets his or her Bluetooth-enabled mobile device to ‘discoverable’, Bluetooth devices within range of the phone can request to connect to it and exchange messages and data This can be used to send location-specific marketing messages, such as discount codes in a shopping mall 17.4.4 USSD Unstructured supplementary service data (USSD) is an alternative messaging system to SMS and is available on most mobile data networks Unlike SMS, USSD is a protocol that allows a query-and-response action between the customer and a service centre USSD services are initiated by the user, who enters a code on the device and then sends that as a request to the network The code differs from the number to which an SMS is sent because it includes the symbols # and * For example, a code like *100# can be used to check the balance of a prepaid airtime account 470 It is a rudimentary navigation process, but with far faster response times and lower costs when compared to SMS or to mobile browsing In lower-income markets where web access is not prevalent, USSD can be a very powerful tool for engaging mobile users – it has a high success rate, low technological barrier to entry, and a low cost for the marketer M-Pesa is a mobile money-transfer service that was created in Kenya in 2007 It was devised to allow urban workers to send money home to their rural families, who had little or no access to banking or postal services, but who owned or could access a mobile phone Since the money is transferred by SMS or USSD, no Internet access is required either M-Pesa has been so successful in Kenya that is has over 10.5 million active monthly subscribers, who have transferred over $5.9 billion (between October 2012 and March 2013) through 65,547 registered agents around the country (Safaricom, 2013) M-Pesa has been rolled out to countries across sub-Saharan Africa and Asia 17.4.5 Instant messaging These services are often used by networks to provide a service to a customer, such as requesting balance information, adding credit to a prepaid contract or passing on credit to another mobile phone user Using USSD can also help you build up a profile of your customer, by tracking the kinds of interactions and services they engage in On top of that, USSD can be used to gather data for CRM purposes, and to conduct surveys, in which you can gather specific data about respondents Instant messaging makes it possible for people to exchange messages in real time To users, it offers many of the benefits of SMS, but it is instant and often cheaper According to Juniper Research, mobile IM users will exceed 1.3 billion globally by 2016 The report also states that the market is fragmented across a wide range of apps and service providers (mobiThinking, 2012) USSD also allows users to complete a double opt in, which is required in some jurisdictions before you can send marketing messages to a recipient IM applications are available to users who own smartphones and also on some feature phones Some of the better known are BlackBerry Messenger, WeChat and 471 Mobile MarketingMobile messaging channels Mobile MarketingMobile messaging channels WhatsApp, which can be installed on any smartphone and some feature phones Other device-agnostic services include Google Talk and Skype The image on the left may look like a hybrid between a crossword and a Sudoku puzzle, but it’s really the QR code for the URL of the mobile version of the marketing blog GottaQuirk, m.gottaquirk.com QR codes are a pull technology – they allow users to take the actions they want conveniently and quickly They can be useful for sharing product or promotional information One of the exciting benefits of QR codes is that they offer a way to activate offline advertising and make it interactive and measurable A print campaign can, for example, include a barcode that can be used to send a user directly to your website QR codes are especially popular in East Asian countries, where the large prevalence of sophisticated smartphones makes accessing and using them easy Figure A WhatsApp discussion on a mobile phone From a marketer’s point of view, IM can offer a channel for customer support, but presents even more of a risk in terms of alienating or angering consumers This is a space reserved for personal contacts That said, instant support gives you the chance to reach customers when they are focused on your service or product This relies on the assumption that you are available to provide the information needed instantly The alternative would just frustrate users 17.4.6 QR codes However, QR codes have their issues They can be prone to bugs, and they also face a large barrier to entry for most smartphone users (since it is necessary to first install a specialised app before you can scan and use QR codes) 17.4.7 Automated voicemail messages note Have you ever scanned a QR code with your phone? What was the experience like? If not, what is holding you back? Automated voicemail messaging (AVM) involves creating a pre-recorded voice message that customers can hear if they dial a specific number This is a popular option in emerging markets where literacy rates are low It also provides an excellent way to capitalise on a celebrity endorsement, since the celebrity can record one message and have it be distributed to callers around the country QR codes, also called 3D barcodes, offer a way to compress complex information into an image that can be decoded by your mobile phone 17.4.8 Voice technologies QR codes can offer users with camera phones a convenient way to get information with just one click Once you have installed a QR code reading app, these barcodes can be interpreted by the phone’s camera to provide website URLs, contact information, discount vouchers, or even to activate downloads These days, mobile phones can also be controlled through voice commands Sophisticated voice-activated applications like Siri on the iPhone allow users to perform complex tasks simply by asking a question or requesting an action out loud For example, Siri responds to queries like “What is the weather like in Denver?” and “Can you move my 9am meeting to lunch time?” by analysing the key words used and returning the correct information, or completing the task You can find out more about Siri here: www.apple.com/ios/siri There are also less-complex versions of voice-based control, for example in Google search, where the user can speak a query rather than typing it (which is beneficial on mobile, considering the typical hassle of typing on a small device) Figure The QR code for the GottaQuirk blog 472 Another mobile voice technology is interactive voice response (IVR) IVR is used in automated telephone systems to navigate through the menus Rather than pressing a specific key to select an option, the user simply speaks their choice 473 Mobile Marketing › Location and mobile Mobile MarketingMobile messaging channels Voice technologies are exciting, convenient and easy to use However, there is still a relatively high rate of inaccuracy in the technology, leading to misunderstood voice inputs and frustrations 17.5 Location and mobile Convenience and location are two cornerstones of the mobile marketing world If services and useful information can be shared based on a user’s location, the possibilities for conversion naturally increase The more contextually relevant your marketing message is to the user, the more likely they are to engage A survey conducted by the Pew Internet and American Life Project found that 74% of smartphone users use their mobile phones to find locations Google found that 68% of mobile users visited the business after searching for it on a smartphone (Google, 2012) And 67% of users surveyed shared that they would be more likely to buy if the website were designed for mobile devices (Google, 2012) 17.5.1 Geo-location Combining mobile marketing techniques with geo-location can go a long way in providing customers with what they need There are a few different scenarios possible for implementing location in your mobile marketing campaigns Location-targeted search offers some significant benefits If searching for a local doctor, for example, it would be immensely useful to find the closest one and a map to his or her location in the first listed result Localised news results could also offer a better user experience for someone conducting a mobile news search Combining short codes or QR codes with print advertising in an area is another way to provide consumers with geo-relevant information A QR code in a store or on a poster could offer a discount voucher to someone coming to the local retail outlet, for example note Google Free Zone is another example of a zero-rated service It allows people in specific countries to access Gmail, Google+ and Google search on mobile without incurring any data costs To reach customers in areas of the world where data is scarcer and more expensive, some online services are turning towards a ‘zero rating’ system – which means that users don’t pay for data when accessing that particular service 17.5.2 Mobile social networks What are mobile social networks? Online social networks have extended their presence to mobile phones • m.facebook.com • m.twitter.com In addition, there are several social networks created specifically for mobile devices and centred on the potential of location-specific awareness One example is Instagram (instagram.com) One successful example of mobile social networking is Mxit This South African company runs a messaging and social networking platform that is popular among the South African youth With 7.5 million monthly active users (McConnachie, 2013), Mxit is a cheaper messaging alternative to standard SMS In addition to the chat rooms in which users interact, Mxit offers brands the option to sell multimedia downloads and customised skins, and to create branded chat rooms for specific competitions or promotions Mxit has its own currency – Moola – which enables purchases via Mxit’s Tradepost commerce system This ties in with Toni Ahonen’s important observation about mobile devices having a built-in payment system – after all, Moola can be purchased using prepaid airtime and then spent on games, images, music tracks and more Many social media and social networking sites are also adopting and encouraging geo-tagging as a way for users to comment on posts Services such as Foursquare (www.foursquare.com) and Facebook encourage users to ‘check in’ when they are at various locations Foursquare also offers a social incentive to check in at locations – the people who visit the most become the ‘Mayor’ and can get cash discounts or vouchers at participating locations For example, Facebook launched its Facebook Zero service in Africa to massive success Accessing the simple, text-based website was free to all users Just 18 months after launching, the number of Facebook users in Africa had increased by 114% (Mims, 2012) When combined with location awareness, mobile search offers a targeted user experience 474 If a website can detect what device someone is using and where they are, content customised to their location could be delivered, either automatically or after user input Figure A super mayor badge from Foursquare 475 Mobile Marketing › Location and mobile Mobile Marketing › Location and mobile Coffee giant Starbucks and clothing brand Gap are two brands that make frequent use of Foursquare for deals, limited-time offers and loyalty rewards Have a look at their listings here: foursquare.com/starbucks and foursquare.com/gap Some platforms allow people to tag locations with notes or information, and to let their friends or contacts know where they are Some users prefer not to this, but for others, the ability to comment on their daily lives is exciting and connects them with people who may not be physically near them through content Mobile social networks can also have operational value, especially from a sales and leads perspective As getting work done becomes more important than where it is done, communication tools are more and more essential to CRM And mobile devices lie at the centre of this note Read more about this in the Search Engine Optimisation chapter As the different networks evolve, it is worth considering the potential of social search as well Product or brand searches based around social networks and location can be a powerful tool: personal referrals are now combined with locationspecific information Because of the prevalence of mobile, there is a strong strategic incentive to provide free, fast Wi-Fi networks to customers who visit physical retail outlets, restaurants or shopping centres Not only does this provide a great selling point, it also gives the marketer a channel to communicate with and gain information from customers For example, this lets you track their mobile behaviour and location (with permission, of course), send coupons and offers, engage in CRMrelated questionnaires, provide helpful information and support, and more the same capabilities of revealing their location In other words, options seem endless, but beware of the hype 17.6 Mobile commerce Mobile commerce covers a wide range of ways in which users can buy things through their mobile devices – whether it’s shopping from the mobile browser, paying with airtime for apps and games, or using the phone’s built-in technology at the point of sale Setting up a successful mobile commerce experience requires that you consider who your mobile customers are What sorts of devices they typically own? Are they comfortable with shopping online in general, and have they bought items on their mobile phones? Use these answers to inform your strategy Since there are so many physical, electronic and mobile payment options available, ensure that you cater to your market by providing a wide range of popular payment options Do some research to discover what consumers in your region are using 17.6.1 Mobile shopping Mobile shopping has become hugely popular because of the flexibility and immediacy of the mobile device – by 2014, a quarter of Chinese smartphone and tablet users will shop online This is twice as many as the rest of the world – still a large number (Naidu-Ghelani, 2013) note One interesting mobile payment tool is Square (squareup.com) - it consists of a small device that attaches to the merchant’s mobile phone, allowing them to swipe and process credit card purchases on the spot 17.5.3 Considerations for location-based mobile marketing Location-based mobile marketing naturally presents a number of concerns and challenges when it comes to user privacy No one wants their location published without their permission, and notifications that suddenly pop up in certain areas could prove highly annoying if control doesn’t remain in the hands of the user For this reason, marketers need to provide a method for people to unsubscribe You could consider contacting users through alternative channels in order to check up on the service and allow them to customise the kinds of messages they receive It must be said, however, that implementation has not always lived up to potential Possibilities such as geographic report-backs on the efficacy of campaigns in certain areas could be immensely valuable, but all of these services and ideas need input from mobile operators, advertising networks and marketing agencies Network operators often closely guard all user information Not all devices have 476 Figure Over half of smartphone searchers make purchases (Image source: Google/Ipsos) 477 Mobile Marketing › Location and mobile Mobile Marketing › Location and mobile Users can purchase goods or services wherever they are via the mobile web They are also able to search for and compare products and prices A spokesperson for eBay finds that mobile users follow through with purchases more often than desktop users A quarter of their new customers are on mobile devices (Kucera, 2013) Attentiveness – Users often give their full attention to category information Killing time – Users access content because they are bored Taking my time – Consumers use as much time as they need to complete a task Urgency – Users experience a sense of urgency about completing a task What people buy online? People buy most things online While the final purchase of a car may be uncommon, the research that goes into making this purchasing decision is often rooted in the online and mobile space note Read more about this in the Market Research chapter Apps and music are currently the most popular items bought through mobile devices, most likely because they involve smaller payments and less risk (Lightspeed Research, 2010) This does not mean that other categories remain unexplored, however The graphic below demonstrates that entertainment and content items dominate as the most popular currently Routine – Users embrace the same method or process used to access category information Passion – They display a sense of enthusiasm about category information Trust and security – Users want to access a trusted and secure source Mobile commerce best practices When building any mobile experience, and especially a mobile store, prioritise the user experience above everything else Mobile users are purpose driven, search orientated, and clear on exactly what they are trying to locate – so make it as easy as possible for them to achieve their goal – which is to find and purchase an item note Read more about this in the User Experience Design chapter • Include a prominent search bar and incorporate auto-suggest to make searching easier and quicker • Keep the menu short and clear, with only the most important items displayed Focus on goals rather than simply long lists of items or categories • Make it easy to navigate by incorporating a prominent ‘back’ button at the top of every page • Lay out individual product pages simply, with the most important information at the top and a clear ‘buy’ button visible Figure 10 Types of goods purchased over mobile phones (Nielsen/Yahoo, 2011) There are various factors that influence a mobile shopper’s behaviour and interests The device and its interface, as well the context within which shopping is explored, have a significant impact on a mobile user’s actions Nielsen and Yahoo conducted research into mobile shopping and established nine mobile principles that define a user’s mobile shopping experience (Nielsen, 2011) These are: Location – Mobile ads should be relevant to a user’s current location Goal orientation – Users actively shop and look up category information and know what they need to and how to achieve it 478 • Include an ‘add to wishlist’ or ‘save this’ button so that customers can find their favourite items later This is especially handy if you also have a full eCommerce site, since customers can browse and research on mobile and then evaluate their purchases later at their desktop computers • Use images to draw attention and illustrate products note • Allow users to sort search results so that they can quickly find exactly what they want However, images can increase a site’s loading time, so ensure you keep their file sizes low • Ensure that users not have to register to make a purchase – many will abandon the process if they are forced to fill out a complex form on the small screen Build the payment system with good security, and reassure users that their details are secure – after all, most people are afraid of transacting on mobile because of security concerns Include a privacy policy and information about the security measures you have taken for users who want to access this information 479 Mobile Marketing › Location and mobile Mobile Marketing › Location and mobile If you want to venture into mobile commerce, it is recommended that you start by developing a mobi site before you spend time and money creating a dedicated store application Not only are people more likely to find you through web search, but the barriers for entry are much lower, since a site does not require the user to download anything Program your full eCommerce site to redirect mobile customers to the mobi site to improve their experience Finally, promote your mCommerce platform across your other media (your website, social media channels and offline promotions) Offering a special mobileonly coupon can drive traffic to this platform and will make customers feel more at ease, since they are being directed there from more trusted sources You can also experiment with QR codes, depending on whether your market is aware of and comfortable with this technology 17.6.2 Near-Field Communication and mobile wallets Near-Field Communication (NFC) technology allows data to be transferred over short distances through the use of data chips This allows consumers to make payments on the spot by simply swiping or scanning their mobile device In order for NFC to work, the consumer must have a chip in their mobile device and the merchant must have the hardware to scan that chip NFC has become more common on smartphones, with almost 100 million mobile devices shipped in 2012 including the technology; however, it is not included on Apple’s iPhones yet (McNulty, 2013) A mobile wallet is a way of storing currency (or other payment methods, such as credit cards or PayPal account details) on a mobile device and then using the device to make payments NFC is the most common technology used for this Mobile wallets are typically used to make small purchases, such as movie tickets, snacks from vending machines and public transport tickets, but can also be used for bigger purchases in place of a credit card NFC payment has the potential to provide a seamless experience for the user And it can potentially be used for far more than just payments – such as personal identification, loyalty cards, membership cards, and perhaps even the keys to your home or car 17.6.3 Mobile ticketing and coupons Mobile ticketing allows consumers to use their mobile devices to purchase and receive tickets for things such as their daily commute, secure parking, and concert seats note Some public transport networks use NFC to make travelling quicker For example, the Oyster system allows Londoners to swipe an NFC-enabled smartcard every time they want to take a bus, tube, tram or train Once a ticket has been purchased, a barcode, password or other identifiable piece of data is sent to the phone via SMS or MMS, and presented at the ticketing station Mobile barcodes can be scanned quickly, making this paperless administration a lot easier, cheaper and more easily accessible Mobile coupons work in a similar way Customers can receive a coupon from the brand – for example, by subscribing to an SMS marketing list, as a reward for completing a USSD survey, or simply by walking near a location-based mobile offer in a store window Coupons are excellent for driving sales, offering free trials, retaining customers and more – especially among customers in the young, mobile-native demographics According to Juniper Research, mobile ticketing transactions will quadruple to 23 billion in 2016, from just billion in 2011 (Juniper Research, 2012) 17.6.4 Mobile currency This type of payment allows consumers to pay via a mobile phone using either e-currency or a mobile voucher These are governed by the banking laws within a specific country The major difference is the ability to draw money from the system For merchants to make the most of these services, they must have online shopping enabled and register with the particular service There are various options available, such as M-Pesa, which is available in many African countries For developing regions such as Africa – where 95% of adults not have bank accounts (Heinrich, 2012), but almost all have access to a mobile phone – this is a significant benefit Figure 11 Using a mobile phone to make an NFC payment (Jargon Media, 2011) 480 One of the key benefits of M-Pesa is that money can be sent by SMS or USSD, meaning that an Internet connection is not required M-Pesa users can send e-money to other mobile users, regardless of their network provider These mobile users can then convert the e-money back into cash via an M-Pesa outlet or a Nedbank ATM Outlets are available at retail stores, Nedbank branches and elsewhere This type of currency can work for even the most basic phone 481 Mobile Marketing › Augmented reality Mobile Marketing › Location and mobile 17.6.5 Carrier-based payments Carrier-based payments make use of expensive premium messages This means that mobile devices can be used to make or receive payments All a user has to is provide the merchant with his or her mobile number for the transaction They are then sent a special code via an SMS and billed for the cost of this premium SMS from their airtime balance The carrier will then receive payment and the merchant will get a portion of this payment Premium messages are usually used to sell mobile content such as ringtones, games, images, wallpapers and music 17.6.6 Airtime as currency It is increasingly common for airtime to be used as a form of currency, especially in developing nations where traditional infrastructure is less freely available As other payment options develop, this may change, but for the moment the significance of this method should not be ignored Airtime has immense value for individuals who depend on their mobile devices for access to a number of services and who opt for prepaid rather than contract options for financial reasons 17.6.7 Mobile banking note Have you ever used mobile banking? Do you consider it more or less secure than banking on a desktop computer? 482 Mobile banking services are available through different mobile channels: • Mobile web: Mobile web banking is when mobile users gain access to modified web versions of the bank’s online site This means that users have full access to their accounts in order to make payments, transfer funds and more Mobile banking through this channel doesn’t usually cost the user more than the online banking subscription • Mobile app: Mobile banking applications give users the ability to access a variety of account features through simple mobile-friendly processes Through apps, users will have full access to their accounts • Mobile text: Mobile banking can also be conducted via SMS and USSD This is useful for non-smartphone users Mobile text banking involves banks sending alerts to customers via SMS, or allowing them to perform simple tasks, like transfers, via USSD Alerts can be sent for account balances, payments, direct deposits, and other account activity These services can be free or available at an additional cost, depending on the provider The text messages themselves are for the consumer’s cost with their mobile phone carriers 17.7 Integrating mobile into online marketing As you may have noticed, many of the chapters in this book discuss mobile applications or variations of standard online marketing strategies We’ve done things this way because mobile is a mindset, not a specific and separate channel – so it should always be taken into account as a facet of any strategy you implement To recap, here are some of the key mobile implementations you can consider – have a look in the relevant chapters for more: • User experience • Email marketing • Social media • Mobile advertising • Search advertising • Search engine optimisation 17.8 Augmented reality Augmented reality (AR) is a variation of virtual reality Rather than immersing the user in a virtual world, however, AR takes computer graphics and superimposes them into ‘reality’ – the physical space around the person operating an AR device These graphics can be 3D images or simply information tags about a location Google Glass is an exciting development in AR – this pair of glasses gives the viewer a digital data overlay over the real world While AR devices are relatively new, they have a history outside their use in mobile They can and have been used in medicine (superimposing surgical information onto a patient’s body), architecture (superimposing virtual buildings into a space where they are yet to be built), or for long-distance collaboration where participants can’t be in the same room 483 Mobile MarketingMobile analytics Mobile Marketing › Augmented reality Mobile-controlled concert in Japan 17.8.3 The quantified self In 2013, Tokyo’s Shiba Park played home to a one-of-a-kind concert – one controlled entirely by the audience’s mobile phones Concertgoers were asked to download the Odoroki app, which was specially built to enable interactions with one’s environment The area was turned into a mobile-operated theme park Through interacting with the app, visitors could control vehicles, fountains, lighting, stage performances and even the illuminations on the city’s iconic Tokyo Tower (Japan Trends, 2013) Another way in which mobile devices are adding a digital layer to the real world is through the trend of the ‘quantified self’, also referred to as personal analytics In essence, this is the practice of using mobile devices to measure your physical behaviours in order to improve health, better understand your habits, get fitter and measure your daily life in more detail 17.8.1 Augmented reality in brand communications The first use of AR in advertising was by HIT Lab NZ and Saatchi & Saatchi in 2005 for an application for the Wellington Zoo, which allowed users to view virtual animals by pointing their phone cameras at printed bar codes (Heinrich, 2012) At present, applications have been interesting but often more gimmicky than useful Some of the examples include an Ikea campaign that allowed people to view virtual versions of their furniture in their homes through their phone cameras (Butcher, 2010) 17.8.2 The future of augmented reality note Do some research into the latest developments in AR technology - how much has changed since this textbook was published? Some examples of this include: • Step counters built in to mobile phones to measure how active you are • Sleep-tracking apps that show how peacefully you sleep and what nightly rhythms and patterns you display • Devices like the Nike+ FuelBand that measure exercise and calories burned • Time-tracking apps to show how much time you spend reading emails, on social media, and more 17.9 Mobile analytics AR is relatively new and still has a long way to go Barriers such as development costs and user education have held it back, but with smartphones and specialised AR devices becoming more common, the potential for AR applications is increasing as well Analytics for mobile sites and applications is a relatively young field, but given that anyone investing in a new technology is interested in return on investment, being able to track the effectiveness of your campaign is an essential part of mobile marketing Going forward, there are a number of challenges AR faces: investment in development and the potential for serious privacy concerns are the most notable The image below illustrates what is possible when mobile, advertising, and geographical location are combined – exciting stuff Traditional analytics, focusing on the web rather than the mobile web, has come a long way in providing us with information about what keywords brought users to our sites, which referrers were used, and how long people spent on a page, as well as a number of other metrics Through various tools, you can gain insight into your users’ actions and from there deduce information about their intent, using this to refine your web presence and campaigns note Read more about this in the Data Analytics chapter While some would argue that both spheres face data collection challenges, there is an understanding that mobile analytics presents more challenges in terms of sourcing reliable data The first thing to acknowledge is that users of mobile analytics may be looking for different kinds of information Given design challenges, primary information would include what device is being used, what network is being used, what browser is used, and then information about screen size Figure 12 Augmented reality on a mobile device 484 485 Mobile Marketing › Case study – Carling Black Label’s “Be the Coach” Mobile MarketingMobile analytics Judah Phillips of Metrics Insider lists the following challenges for mobile analytics: • • Not all mobile browsers support JavaScript, meaning that the most common method for collecting data is not available on a lot of mobile devices Mobile analytics packages have had to come up with alternative implementation methods such as packet-sniffers and accessing log files Handset capability detection can be a challenge for some packages, and is not offered as a rule If this information is important for your site, you may need to investigate carefully the analytics package you use 486 Carling Black Label engaged soccer fans with an innovative and successful mobile campaign tailored for feature phones 17.11.2 The problem Carling Black Label, a well-known South African beer brand, wanted to engage its market in an unprecedented way The target market they wanted to reach had a low Internet penetration rate, but had a high rate of mobile access They knew that many Black Label drinkers are also passionate soccer fans – who, like all fans around the world, thought that perhaps they could a good job at coaching their favourite team, Kaiser Chiefs 17.10 Advantages and challenges 17.11.3 The solution Because the mobile phone is so personal, permission and privacy need to be at the core of any mobile campaign Unlike the situation with email or web pages, where there is space available on screen to explain privacy and permission, there is very little real estate on a mobile device to so Ensure that you have very clear permission to market to the phone numbers on your database and that it is easy for users to opt out of receiving your messages How can responsive web design help meet the challenge of non-standard mobile devices? 17.11.1 One-line summary Beyond this, however, there are a number of tools that have developed to provide mobile analytics data Some of the ones most often discussed include the offerings from AdMob and Google Analytics, which are both available for free Google Analytics for mobile offers options for tracking iPhone and Android applications, and for tracking mobile websites Its server-side tracking options can be used to track sites on phones that don’t support JavaScript The mobile phone has many benefits but also comes with its own challenges Many mobile marketing mediums need little audience education, but marketers need to be careful when creating more complicated campaigns and applications If there is an extensive education process required in order for a campaign to succeed, it probably needs to be rethought note 17.11 Case study – Carling Black Label’s “Be the Coach” Mobile devices are even less standard than PCs Not only device models present myriad screen sizes; there are also several operating systems and browsers that are used This can make standardising websites and campaign materials a challenge Mobile devices usually have a small screen and keypad or touch interface When it comes to the mobile web, consider that devices not have a mouse and full keyboard These limited navigation options mean that inputting information and browsing can be harder The brand identified that their target audience was active on mobile, but typically owned lower-end feature phones, so any mobile marketing campaign had to take this into account To create a feeling of involvement in the sport, Black Label created the “Be the Coach” campaign Using mobile devices, fans could choose players for the team and even substitute a player right in the middle of a match The campaign was advertised on Black Label bottles, TV and radio, as well as other media Fans used the code on the inside of the beer bottle cap to participate Communicating through USSD, they voted on which players to include, and then participated during the live match by choosing which players should be substituted A mobile site was also purpose-built for the campaign, where team, player and voting information could be viewed, and fans could access the “Be the Coach” Facebook and Twitter profiles Participants used their mobile numbers to sign in to the site; this low barrier to entry made the campaign easily accessible Web-enabled mobile devices could access the campaign information through the site in real time Facebook ads, display ads and digital PR were also used to promote the campaign Another important mobile aspect was the use of Mxit The campaign was advertised for two weeks on this portal Fans could create a “Be the Coach” profile on Mxit and visit the mobile site from there 487 Mobile Marketing › Chapter questions Mobile Marketing › Case study – Carling Black Label’s “Be the Coach” and offline marketing channels, since the mobile device can be physically located in the real-world space, and access the digital world at the same time We’ve listed earlier in this chapter some of the many marketing tactics of which mobile can form part Mobile should also be a central consideration in your marketing and content strategy – consider the context of the user and how mobile content is consumed differently Mobile is also excellent in CRM and customer support, where it provides an always-on, always accessible channel to answer queries, resolve issues and reward customers 17.13 Summary The mobile device cannot be ignored as an important tool in any marketing campaign There are messaging capabilities unique to mobile that can be very effective – from SMS to USSD and Bluetooth Figure 13 A video for the “Be the Coach” campaign 17.11.4 The results Over seven weeks of voting, the campaign created intense discussion among fans, players, coaches and journalists It also garnered some incredibly impressive results: • Fans voted more than 10.5 million times over the seven-week voting period • A record 85 000 tickets to the game were sold, and millions more watched from home • The Facebook and Twitter accounts grew by 450%  and 600%  respectively • The equivalent PR value of all this attention came in at over R83 million • The mobi site had 31 088 visitors (18 405 of these were unique), and users visited 6.97 pages on average, with an average time on site of minutes 30 seconds On the day of the game, rival team Orlando Pirates won, but the fans did get to “Be the Coach” for Kaiser Chiefs (Ogilvy & Mather South Africa, n.d.) 17.12 The bigger picture Mobile communications should always be considered in context within your other marketing communications The mobile channel is not a separate one, but rather one that can be accessed and integrated with many other forms of communication One of mobile’s powerful characteristics is its ability to stitch media together – especially online 488 Exciting technological developments also open up the opportunities for interactive campaigns and mobile experiences Although not widely adopted yet, QR codes can be the point of interaction that connects other media to the mobile device Augmented reality campaigns can also create a rich interactive experience for a user by adding a layer of information to the real world As with any digital marketing approach, planning is vital While mobile can offer a dazzling array of marketing and communication opportunities, knowing your audience will help you to best plan those most suited to your market and your campaign 17.14 Case study questions Why was USSD the best choice for this campaign? Describe how the device combined real world experiences with digital options Are there any other mobile marketing options that you would have incorporated into this campaign? 17.15 Chapter questions What makes SMS such a powerful marketing medium? When is it a good idea to invest in an augmented reality application for your brand? What are the main benefits and concerns of mobile advertising? How would you go about deciding which engagement method is the best one for your target market? 489 Mobile Marketing › Further Reading 17.16 Further reading mobithinking.com – mobiThinking offers the latest stats and research into the rapidly changing mobile world www.comscore.com – comScore is one of the leading digital marketing websites, regularly releasing white papers and statistics www.mobilemarketer.com – Mobile Marketer, as the name implies, is geared heavily towards different forms of mobile marketing Keep an eye on this site for news and developments in this industry 17.17 References Ahonen, T T., 2008 Mobile as 7th of the Mass Media London: Futuretext Butcher, D., (2010) IKEA takes its product catalog mobile with augmented reality app [online] Available at: http://www.mobilecommercedaily.com/ikea-takes-its-product-catalog-mobile-withaugmented-reality-app [Accessed 29 September 2013] Clark-Dickson, P., (2013) Press release: OTT messaging traffic will be twice the volume of P2P SMS traffic by end-2013 [Online] Available at: http://blogs.informatandm.com/12861/news-release-ott-messaging-traffic-will-betwice-the-volume-of-p2p-sms-traffic-by-end-2013/ [Accessed 22 July 2013] Competition, n.d [Online Image] Available at: http://www.sparkatm.co.za/images/competition.jpg [Accessed June 2013] Fast Company, (2011), Visa beats Apple to iPhone NFC payments in Euro Experiment Available at: http://www.fastcompany.com/1722944/visa-beats-apple-iphone-nfc-paymentseuro-experiment [Accessed 23 September 2013] Google, 2012 What Users Want Most from Mobile Sites Today [Online] Available at: http://google.com/research-studies/what-users-want-most-from-mobile-sitestoday.html [Accessed 16 May 2013] Google/Ipsos (2011) The Mobile Movement [Online] Available at: http://www.slideshare.net/tessierv/google-thinkmobile-2011 [Accessed July 2012] 490 Mobile Marketing › References Heinrich, E., 2012 The Secret of Africa’s Banking Boom: Mobility [Online] Available at: http://techland.time.com/2012/08/16/the-secret-of-africas-banking-boom-mobility/ [Accessed 16 May 2013] Japan Trends, (2013) Kyary Pamyu Pamyu, au KDDI’s Odoroki turn Tokyo into interactive digital theme park [Online] Available at: http://www.japantrends.com/kyary-pamyu-pamyu-au-kddi-smartphone-odorokiapp-interactive-full-control-tokyo/ [Accessed 22 July 2013] Jargon Media., (2011) NFC App Advice [Online image] Available at: http://jargonmedia.com/wp-content/uploads/2011/03/NFC-AppAdvice.jpg [Accessed 27 September 2013] Juniper Research, (2012) Press Release: Mobile Tickets Quadruple to 23 billion Globally by 2016 as Tickets Find a Place in the Mobile Wallet [Online] Available at: http://www.juniperresearch.com/viewpressrelease.php?pr=298 [Accessed 22 July 2013] Kucera, D., 2013 Ebay Sales Beat Estimates as Donahoe Pushes Mobile Sales [Online] Available at: http://www.bloomberg.com/news/2013-01-17/ebay-sales-beat-estimates-asdonahoe-pushes-mobile-sales.html [Accessed 16 May 2013] Lightspeed Research, 2010 29% of European Mobile Consumers Respond to Mobile Adverts They See [Online] Available at: http://www.lightspeedresearch.com/press-releases/29-of-european-mobileconsumers-respond-to-mobile-adverts-they-see/ [Accessed October 2013] McConnachie, K., (2013) Mxit’s smartphone challenge [Online] Available at: http://www.itweb.co.za/index.php?option=com_content&view=article&id=61692 [Accessed 22 July 2013] McNulty, M.A., 2013 Groups Explore Payment, Transport Uses For Near-Field Communications Tech [Online] Available at: http://www.businesstravelnews.com/Expense-Management/Groups-ExplorePayment,-Transport-Uses-For-Near-Field-Communications-Tech/?ida=Technology&a=proc [Accessed 16 May 2013] Mims, C., (2012) Facebook’s plan to find its next billion users: convince them the internet and Facebook are the same [Online] Available at: http://qz.com/5180/facebooks-plan-to-find-its-next-billion-users-convince-themthe-internet-and-facebook-are-the-same/ [Accessed 31 July 2013] 491 Mobile Marketing › References Mobile Marketing Association (2013) Glossary [Online] Available at: http://www.mmaglobal.com/wiki/mobile-marketing [Accessed August 2013] mobiThinking, 2012 The insider’s guide to mobile Web and marketing in Kenya 2012 [Online] Available at: http://mobithinking.com/country-guides-home/guide-mobile-web-kenya [Accessed 16 May 2013] Naidu-Ghelani, R., 2013 Chinese Take to Mobile Shopping Faster Than Peers [Online] Available at: http://www.cnbc.com/id/100713504 [Accessed 16 May 2013] Nielsen/Yahoo! (2011) The Mobile Shopping Framework Study [Online] Available at: http://l.yimg.com/a/i/us/ayc/article/mobile_shopping_framework_white_paper.pdf [Accessed July 2012, link inactive] Ogilvy & Mather South Africa, n.d Ogilvy One Worldwide [Online] Available at: http://www.ogilvyone.co.za/carling-black-label-be-the-coach/ [Accessed May 2013] Safaricom, (2013) FY 2013 Presentation [Online] Available at: http://www.safaricom.co.ke/images/Downloads/Resources_Downloads/FY_2013_ Results_Presentation.pdf [Accessed 31 July 2013] Tam, D., (2013) Facebook by the numbers: 1.06 billion monthly active users [Online] Available at: http://news.cnet.com/8301-1023_3-57566550-93/facebook-by-the-numbers-1.06billion-monthly-active-users/ [Accessed August 2013] Vranica, S., (2013) Why Advertisers Are Warming to Facebook [Online] Available at: http://online.wsj.com/article/SB10001424127887323971204578628252225861688.html [Accessed 30 July 2013] Wang, Y., (2013) More People Have Cell Phones Than Toilets, U.N Study Shows [Online] Available at: http://newsfeed.time.com/2013/03/25/more-people-have-cell-phones-than-toiletsu-n-study-shows/ [Accessed August 2013] 492 ... We explore mobile analytics and mechanics for measuring your mobile marketing efforts Mobile Marketing › Key terms and concepts Mobile Marketing › Introduction 17.1 Introduction The mobile web... interactivity within campaigns created for mobile It presents the mobile device as a useful 465 Mobile Marketing › Mobile messaging channels Mobile Marketing › The role of mobile in personal communication... network engineers to conduct tests on mobile networks, and not for commercial use at all 467 Mobile Marketing › Mobile messaging channels Mobile Marketing › Mobile messaging channels SMS messages
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